ECON 2105 Exam 2 Questions and Answers |
2026 Update | 100% Correct\\pass!!
If you were attempting to forecast the level of consumer spending by households, which
measure of total production or total income might be most helpful in making your
forecast?
A. Disposable personal income
B. Personal income
C. Gross national product
D. Net national product - ANSWER-A. Disposable personal income
If the GDP deflator in 2012 has a value of 98.0, then
A. prices have decreased 2 percent between the base year and 2012.
B. the inflation rate in 2012 is -2 percent.
C. prices have increased 9.8 percent between the base year and 2012.
D. the inflation rate in 2012 is 2 percent. - ANSWER-A. prices have decreased 2
percent between the base year and 2012.
Consider the following data for a closed economy:
Y = $14 trillion
C = $10 trillion
G = $3 trillion
Spublic = $−1.0 trillion
T = $4 trillion
Use the data to calculate the following: (Enter your responses rounded to one decimal
place.)
a. Private saving is: $_____ trillion.
, b. Investment spending is: $_____ trillion.
c. Transfer payments are: $_____ trillion.
d. The government budget balance is: $_____ trillion and as a result the government
budget is in _____ . - ANSWER-a. $2 trillion
b. $1 trillion
c. $2.0 trillion
d.$-1.0 trillion, DEFICIT
What index is used to measure the average prices paid by a typical family?
An average of the prices of the goods and services purchased by a typical family is the:
A. inflation rate index.
B. consumer price index (CPI).
C. producer price index (PPI).
D. aggregate price level index.
Suppose the economy's consumer price index (CPI) in 2008 was 185 and the CPI in
2009 was 197.
The inflation rate over the period from 2008-2009 was equal to _____%. (Enter your
response rounded to one decimal place.) - ANSWER-B. consumer price index (CPI).
6.5%
If real GDP equals $11,567 billion in 2006 and $11,916 billion in 2007, and assuming
population is constant over those two years, how many years will it take for real GDP
per capita to double? _____ years. (Enter your response as a real number rounded to
one decimal place.) - ANSWER-23.3 years
Panel (a) above shows an idealized business cycle. Panel (b) shows an actual business
cycle by plotting fluctuations in real GDP during the period from 1999 to 2002. Use the
graphs to help determine which one of the following statements is NOT true:
A. The recession in the early 2000's reached a business cycle trough in November
2001, when the next expansion began.
B. Inconsistent movements in real GDP around the business cycle peak can mean that
the beginning and ending of a recession are clear-cut.
C. The expansion beginning from at least 1999 continued until a business cycle peak
was reached in March 2001.
D. An idealized business cycle has a smooth increases and decreases in GDP during
the business cycle, while an actual business cycle is not as smooth. - ANSWER-B.
Inconsistent movements in real GDP around the business cycle peak can mean that the
beginning and ending of a recession are clear-cut.
At the start of the year, the rate of unemployment among U.S. citizens who were
between 50 to 60 years old was 7 percent. At the end of the year, the same age-group
reported an unemployment rate of 6 percent. However, a newspaper columnist claims
that the falling unemployment rate is not an accurate indicator of the overall
employment situation of this age-group.
2026 Update | 100% Correct\\pass!!
If you were attempting to forecast the level of consumer spending by households, which
measure of total production or total income might be most helpful in making your
forecast?
A. Disposable personal income
B. Personal income
C. Gross national product
D. Net national product - ANSWER-A. Disposable personal income
If the GDP deflator in 2012 has a value of 98.0, then
A. prices have decreased 2 percent between the base year and 2012.
B. the inflation rate in 2012 is -2 percent.
C. prices have increased 9.8 percent between the base year and 2012.
D. the inflation rate in 2012 is 2 percent. - ANSWER-A. prices have decreased 2
percent between the base year and 2012.
Consider the following data for a closed economy:
Y = $14 trillion
C = $10 trillion
G = $3 trillion
Spublic = $−1.0 trillion
T = $4 trillion
Use the data to calculate the following: (Enter your responses rounded to one decimal
place.)
a. Private saving is: $_____ trillion.
, b. Investment spending is: $_____ trillion.
c. Transfer payments are: $_____ trillion.
d. The government budget balance is: $_____ trillion and as a result the government
budget is in _____ . - ANSWER-a. $2 trillion
b. $1 trillion
c. $2.0 trillion
d.$-1.0 trillion, DEFICIT
What index is used to measure the average prices paid by a typical family?
An average of the prices of the goods and services purchased by a typical family is the:
A. inflation rate index.
B. consumer price index (CPI).
C. producer price index (PPI).
D. aggregate price level index.
Suppose the economy's consumer price index (CPI) in 2008 was 185 and the CPI in
2009 was 197.
The inflation rate over the period from 2008-2009 was equal to _____%. (Enter your
response rounded to one decimal place.) - ANSWER-B. consumer price index (CPI).
6.5%
If real GDP equals $11,567 billion in 2006 and $11,916 billion in 2007, and assuming
population is constant over those two years, how many years will it take for real GDP
per capita to double? _____ years. (Enter your response as a real number rounded to
one decimal place.) - ANSWER-23.3 years
Panel (a) above shows an idealized business cycle. Panel (b) shows an actual business
cycle by plotting fluctuations in real GDP during the period from 1999 to 2002. Use the
graphs to help determine which one of the following statements is NOT true:
A. The recession in the early 2000's reached a business cycle trough in November
2001, when the next expansion began.
B. Inconsistent movements in real GDP around the business cycle peak can mean that
the beginning and ending of a recession are clear-cut.
C. The expansion beginning from at least 1999 continued until a business cycle peak
was reached in March 2001.
D. An idealized business cycle has a smooth increases and decreases in GDP during
the business cycle, while an actual business cycle is not as smooth. - ANSWER-B.
Inconsistent movements in real GDP around the business cycle peak can mean that the
beginning and ending of a recession are clear-cut.
At the start of the year, the rate of unemployment among U.S. citizens who were
between 50 to 60 years old was 7 percent. At the end of the year, the same age-group
reported an unemployment rate of 6 percent. However, a newspaper columnist claims
that the falling unemployment rate is not an accurate indicator of the overall
employment situation of this age-group.
